CURRENT ISSUE

CURRENT ISSUE

Daniel Fitzgerald

HP to axe 24,600 jobs

16 September, 2008

Roughly half of the mooted cuts will take place in the US, with the vast majority expected to come from EDS’s operations, as HP looks to “streamline the combined company’s services”. HP and EDS currently have a combined workforce of 320,000, with approximately 178,000 at HP and 142,000 at EDS.

HP expects to save $1.8 billion a year once the “restructuring” is complete, though some reports put the figure at closer to $2.5 billion. They have forecast a $1.7 billion charge for the current quarter as they implement the plan.

Many analysts have anticipated a cutting spree following the printing giant’s $13.9 billion acquisition of EDS. This purge is the latest in a string of cuts from the company since CEO Mark Hurd took the reins in 2005.

HP shares fell $1.64, or 3.49%, to $45.33 in Monday trading, though this comes on the back of a stock market plunge as US investment bank Lehman Brothers filed for bankruptcy.

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